TOPIC 1 LOGISTICS AND WAREHOUSE PLANNING

1.1 Business logistics

Logistics is a business activity aimed at planning and managing.
all operations related to the optimal flow of raw materials, products
semi-finished and finished products, from the supply sources
to the final consumer.
The approximation of the product to the market is a logistical process that is carried out to
through transformation, storage, and transportation activities.

FUNCTIONS OF THE LOGISTIC CHAIN

In order for the product to reach the final consumer, two are generally used.
ways:
Supply channel: When the product is transferred from the center
from extraction to the factory or warehouse.
Distribution channel: When the product is transferred from the factory or the
warehouse to the points of sale.
Industrial companies are characterized by their transformative activity. Their
Logistics functions are divided into 4 groups:
Provisioning: Select the most efficient suppliers at a minimum
is possible.
Production: Organize all means of production: physical, human and the
transformation activities.
Distribution of goods: To adjust the storage and transportation medium. The
logistical activities regarding the storage must enter the location, the
distribution and the optimization of stock management, while the applied
Altransport selects the most optimal routes and means.
Servicing after sale: Study the needs of the clients, manage the
orders and returns, etc.
In an industrial company, procurement can come from internal sources or
externas.
Industrial companies engage in their activities in procurement functions.
and distribution, since the product or merchandise is acquired with the aim of reselling them
previous transformation.
Service companies fulfill their functions by satisfying the needs of the
clients. The goods they acquire to carry out the activity are not stored
generally.
OBJECTIVES OF LOGISTICS
Its main objective is to satisfy the demand under the best conditions.
serving, managing the necessary means and mobilizing resources
humans and more suitable financiers. The objectives pursued are a good
logistics planning are:
Acquire the materials in the most suitable conditions.
Reduce transportation costs.
Reduce handling costs.
Reduce the groups of classification of the stock.
Reduce the number of revisions and inventory control.

1.2. LOGISTICS CHAIN AGENTS

TYPES OF COMPANIES ACCORDING TO THE SECTOR OF ACTIVITY.

· Extractive companies ---- Primary Sector ---- Extract raw materials.

· Industrial companies----Secondary Sector---Manufacture or manipulate goods
fsiios.
Service companies----Tertiary Sector-----Offer goods and services.

DISTRIBUTION CHANNELS
The distribution channel is the route that the product follows from the manufacturer to
the consumer. This product can be sold through various intermediaries or
directly between the manufacturer and the consumer.
DIRECT SALE: It consists of directly delivering the product to the consumer through
in-house salespeople (employees of the company) or intermediary agents (for
own youth in exchange for a mission
INDIRECT SALES: It involves bringing the product to the consumer through
from one or more intermediaries. There are two types: Retailers and wholesalers.

According to the intermediaries involved in the distribution, 4 channels are distinguished:

· Canal level iero: There are no intermediaries.

Single channel: The product passes through a wholesaler or retailer.
Two-level canal: At least 2 intermediaries.
· Three-level channel: When other intermediaries are introduced
importer, purchasing agents, etc.
The company that manufactures the product must choose the longest possible route. The costs
Of storage and transport, they will affect the final price, but they are essential values because
they add time (warehouse) and situation (transport).
Product lifecycle:
1. Introduction or launch: Slow sales decline, high costs and
low benefits.
2. Growth or development: Investment generates benefits and sales
increase.
3. Maturity: The longest phase where the product has positioned itself as a leader in the
Halfway, sales are maintained and demand stabilizes.
Rapid decline in demand and sales due to the appearance
of substitute products.

1.3. REVERSE LOGISTICS IN THE SUPPLY CHAIN

It includes all the movements of materials from the consumer or user towards the
fabricating or locating the collection points, for their reuse, recycling or
destruction.
Reverse logistics is the flow from the consumer to the manufacturer.
Causes that originate reverse logistics:
Return of defective products.
Devolution for inventory discrepancies.
User or consumer refund.
Commitment of the manufacturer.
Reconditioning and disposal of parts.
Beginning of a new production line.

1.4. NEW LOGISTICS: CROSS DOCKING

Cross docking is a distribution system in which the products received in a
They are not stored in the warehouse or distribution center, but are prepared.
immediately for your next shipment.
It is in a process of consolidation of various products and deconsolidation of
various orders.

TYPES OF CROSS DOCKING:

Cross Doiking right: The units of load that arrive are transported to the
departure dock without manipulation. Deliveries are prepared by the
provider.
Cross Doikingindireito: The palettes arrive fragmented and need to be separated and
Repackaging them for delivery, involving more handling operations.

STRATEGIES AND CHARACTERISTICS OF CROSS DOCKING:

The strategy consists of the continuous flow of products, cost savings, transportation.
fast, at low cost and meet the needs of the clients. Characteristics of a
company that applies Cross Docking:
Storage time less than 24 hours.
The received merchandise is sent to the final destination or taken to the area of
picking.
Effective exchange of information between suppliers, distribution centers
and yelping.

ELEMENTS TO APPLY CROSS DOCKING

Economic evaluation
Commitment of top management
Horizontal composition of the organization
Utilization of tools that allow for an efficient response to
consumer ion (ECR)

1.5. WAREHOUSE: CONCEPT AND FUNCTIONS

The warehouse is the building or place where merchandise or materials are stored or deposited.
Some sales are made.
FUNCTIONS AND ACTIVITIES OF THE WAREHOUSE

Reception of merchandise: To check in the items sent by the

suppliers, ensuring that they match the order.
Alignment: Locate the merchandise in the most suitable area for the purpose of
to aid her and to make her loyal easily.
 Conservation and maintenance: Keep the merchandise in perfect condition.
Management and control of inventories: Determine the quantity that needs to be
almanac of each product and calculate the frequency and quantity of each order.
Merchandise expedition: Select merchandise, packaging, and means of
transport

1.6. TYPES OF WAREHOUSES

According to the structure:

To the open sky

Covered souls

According to the company's activity:

Wholesalers or retailers only use a warehouse called merchandise.

industrial companies require various types of warehouses:
Warehouse of raw materials and auxiliary materials: Located within the
reincarnation of the plant and obtains the necessary materials and supplies for the
production.
Warehouse of finished products: They are located within the plant or close to it.
they are exclusively dedicated to the storage of certain products.
General storage: Designed for storing spare parts, tools and
auxiliary materials for production.
According to the logistic function:

Warehouse or logistics platform: Center area is located in

fabrication. They must be prepared and conditioned to handle units
of large dimensions, and for the loading and unloading of trucks.
Almaién detránsito or ionsolidaiión: They are located at strategic points and are
ready for a quick load and unload. They are used when the area is
The coverage for the regional warehouse is very extensive and the treatment is superior to a
journey.
Regional or area wholesaler: They supply to wholesale and retail clients.
from a certain region. They must be as close as possible to the points of
sale.
According to the degree of automation:

Conventional: Equipped with shelves and simple means for transportation

internal. The activities are carried out manually and their maximum height is
10m.
Automated: Most activities are carried out with means
thorns.
Automatios: Also ionoids like high density almas, iuya
The speed/volume ratio is greater than 50%
According to ownership or property:
Private warehouses that belong to the same person.
owner or company. Requires an investment and some expenses that occur to
company logo.
Apartments for rent: The main advantage they have is that they do not require
a great initial investment.
Leased items: Their use is established in a contract.
long-term rental, right to purchase if the owner has the intention to sell
sell the loyal.

1.7. PLANNING AND LOCATION OF WAREHOUSES

Once the decisions about ownership have been made, the next step is
plan the location, design, and distribution of spaces, equipment, and means
may the remedies be good, yes.
Factors that influence the planning of a warehouse:
Product: Characteristics and quantity to store.
Manufacturing capacity of the industry.
Characteristics of the distribution network.
Cost of the project and the costs that will affect the activity
business.
CENTRAL WAREHOUSE
It serves as the regulator of the finished products obtained in one or several processes.
industriales, proiedentes de distntas fuentes de suministro y al mismo tempo aitúa
iomo ientro de distribution of the same.
To locate a central warehouse, it is essential to primarily consider the origin of
the products and their destination.
Editing a warehouse implies that the company has to make a large investment in
Capital investment will take place over a very long term. Main costs:
Acquisition of the land and the permits and authorizations.
Education or instruction.
Cost of direct and indirect labor.